- NZDUSD finds support at 200-day SMA
- Prices have been heading lower over the last month
- Stochastics and RSI keep downside move
NZDUSD is posting notable losses after the RBNZ’s policy decision to leave interest rates unchanged at 5.5%. The pair is pausing its decline near the 200-day simple moving average (SMA) at 0.6070 and the short-term ascending trend line.
Technically, the stochastic oscillator posted a bearish crossover within its %K and %D lines near the overbought region, while the RSI is heading south below the neutral threshold of 50. Additionally, the 20- and 50-day SMAs are moving lower, with the potential for a downside crossover.
Immediate support could be found near the 0.6050 level before tumbling to the 0.5980 barrier and switching the outlook to a more bearish one.
On the other hand, traders should look to the previous peak at 0.6150 as the first resistance after a successful bounce off the uptrend line, before resting near the 0.6220 obstacle again. A penetration of this level would add optimism for more buying interest until 0.6280, registered in January.
To summarize, NZDUSD has been in a bearish wave since it topped at 0.6220 in the very short term, but over the last three months, it has posted higher highs and higher lows.
